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How Does Pay Per Click Work?

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Pay per click campaigns

To showcase how widespread display ads have become, paid digital marketing campaigns saw an investment of $10 billion in 2017. At least 79% of business owners agree that pay-per-click marketing is good for eCommerce and brick-and-mortar businesses.

Paid search works because of valuable digital real estate. In short, prepare to shell out a higher fee if you intend to promote your brand on prime websites. Thankfully, not all websites are prime digital real estate.

We probe into this digital marketing strategy to answer “how does pay per click work?”

PPC Models

You will employ different models to accomplish pay-per-click. A PPC model works by showing searchers ads related to the search terms explored on search engines.

In short, a pay-per-click advertising model relies heavily on the right keywords and match types, so quality ad copy and selectively chosen keywords yield better results.

There are two types of PPC advertising models:

  • Flat-rate model: The advertiser pays a publisher a fixed fee. The publisher will list different rates that apply to different parts of their websites. Some prices are flexible, with publishers open to negotiation.
  • Bid-based model: Advertisers offer the maximum amount of money they are willing to pay a publisher for a premium spot. An automated ranking system determines the auction’s winner. Potential customers on the premium spot trigger the automated tools. Bidding strategies work when you have enough funds for ad spending. The quality of the content and money offered determine a low or high ad rank.

If you don’t have a sizable bidding war kitty, it helps to use negative keywords. That will help stay laser-focused on relevant keywords and avoid the wide-reaching but unfocussed broad match.

Why Businesses Use PPC Marketing

The core reason to run ads (PPC marketing) is the same as any other advertising method: brand awareness. Additionally, PPC work fits your daily budget, offers measurable results, and provides valuable data.

Unlike organic search, it doesn’t matter if you jump into search ads a decade behind competitors. You can still achieve quick results using SEO optimization, ad placement, ad groups, and choosing the right metrics, like demographics.

It also has remarketing capabilities to help close potential customers who were on the brink of purchasing but moved to other websites. Further, it offers location targeting, so you acquire new customers in your locality or a specified location.

Finally, PPC makes it easy to create and track business goals.

Best PPC Platforms

Some online advertising platforms are more popular and have better conversion rates, including:

Google Adwords: According to Comscore, Google ad campaigns reach an estimated 90% of internet users. Google offers ads through channels like search engine results pages (SERPs), Gmail in-app advertising, and Google Display Network. Publishers can also use YouTube ads creatively through interactive content.

Microsoft/Bing ads: Microsoft offers a similar ads package to Google, as it still commands a third of the global market reach. Additionally, Bing ads are significantly cheaper than Google ads. You get options such as Xbox, MSN, Windows App Store, and Outlook Email for your display ads network.

Facebook ads: The social media platform boasts 1.2 billion daily users. Formats used include Facebook, Messenger, Instagram, and Facebook partner apps.

Instagram ads: With a reach of over 1 billion daily users, Instagram also has the highest click-through rate (CTR) of any social media platform.

Top Factors Affecting Ppc Advertising Campaigns

Even though several factors affect the success of a PPC campaign, you can get the most out of it by focusing on the following:

  1. Keyword relevance: Craft relevant keyword lists, targeting your PPC campaign niche. Choose specific keywords and create proper ad texts. Proper keyword research is essential for an effective PPC marketing campaign.
  2. Quality score: Quality score refers to Google’s rating on the quality and relevance of your keyword choice, PPC campaigns, and landing pages.
  3. Landing page quality: Refers to relevant and persuasive content creation of landing page material. The content should have clear call-to-actions and must meet search queries and the target audiences’ needs.
  4. Creativity: Craft juicy and enticing designer-quality PPC ads that compel potential customers to click on them.

Final Word – How Much Does It Cost, and How Does Pay-Per-Click Work?

The cost per click (CPC) depends on several factors, including what ad network you choose. For instance, a click on Google will cost more than one on Bing.

Statista shows that Google holds a whopping 85.55% of the global search market as of December 2021, while Bing holds a mere 7%. The numbers also show that Google search yields better results.

PPC makes use of keywords used during online searches to display targeted ads. The ads could show local businesses or carry on to other sites the searcher visits. All that considered, it’s easy to see why pay-per-click ads are advantageous to businesses.  

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